Cost overrun is ubiquitous in public procurement. We argue that this can be the result of a constraint optimal award …

-aversion (CRRA) coefficients and distributions of private costs. Our Bayesian approach evaluates the likelihood by solving type … counterfactual study shows that choosing a type-specific cost-minimizing reserve price marginally reduces the procurement cost …

Cost overrun is ubiquitous in public procurement. We argue that this can be the result of a constrained optimal award … takes place and the fancy design has higher production costs or the contractor's bargaining position is strong, the final …

An increasingly studied auction format is the asymmetric procurement auction, which features an advantaged bidder … are cost-disadvantaged can overcome their inferior cost position. In a design that mirrors real construction procurement … bidder performance in a procurement auction where the only asymmetry is due to a cost. In this setting, analytical benchmarks …

payment rule. Secondly, we introduce a simple two-stage mechanism which always leads to a decrease in procurement costs …

I study the interaction between optimal procurement and outsourcing of production in small industries. First, two … sellers decide about outsourcing. By outsourcing, a seller loses information about the costs of producing to his supplier …. Then the buyer designs the procurement mechanism and sellers who outsourced production subcontract with their respective …

For a repeated procurement problem, we compare two stylized negotiating cultures which differ in how the buyer uses an … entrant to exert pressure on the incumbent resembling U.S. style and Japanese style procurement. In each period, the suppliers … are privately informed about their production cost, but only the incumbent can influence the buyer s procurement mechanism …

Adverse selection in procurement arises when low-cost bidders are also low-quality suppliers. We propose a mechanism …. We perform a counterfactual experiment on Italian government procurement auctions: we compute the gain that the …

descend synchronously such that the cheapest projects are executed. The case in which values or costs are asymmetrically …